Games and Dynamics in Economics

Ferenc Szidarovszky, Corvinus University
Gian Italo Bischi, University of Urbino

This book focuses on the latest advances in nonlinear dynamic modeling in economics and finance, mainly-but not solely-based on the description of strategic interaction by using concepts and methods from dynamic and evolutionary game theory. The respective chapters cover a range of theoretical issues and examples concerning how the qualitative theory of dynamical systems is used to analyze the local and global bifurcations that characterize complex behaviors observed in social systems where heterogeneous and boundedly rational economic agents interact. Nonlinear dynamical systems, represented by difference and differential and functional equations, are extensively used to simulate the behavior of time-evolving economic systems, also in the presence of time lags, discontinuities, and hysteresis phenomena. In addition, some theoretical issues and particular applications are discussed, as well. The contributions gathered here offer an up-to-date review of the latest research in thisrapidly developing research area.

Gathers papers highlighting the newest research topics in dynamic economics

Preface.-Introduction.-Magical Mystery Tour from Linearity to Nonlinearity.-Coupled Chaotic Systems and Extreme Ecologic-Economic Outcomes.-A Co-evolutionary Model for Human Capital and Innovative Firms.-Path Dependence in Models with Fading Memory or Adaptive Learning.-Come Together: The Role of Cognitively Biased Imitators in a Small Scale Agent-based Financial Market.-Evolutionary Tax Evasion, Prospect Theory and Heterogeneous Taxpayers.-On Dynamics of a Three-country Kaldorian Model of Business Cycles with Fixed Exchange Rates.-Eductive Stability, Heterogeneous Information Costs and Period-two Cycle Multiplicity.-Noether's Theorem and the Lie Symmetries in the Goodwin-model.-Mixed Duopolies with Advance Production.-Necessary Conditions for Concave and Cournot Oligopoly Games.-Set-valued Techniques in Dynamic Economic Models.-Agent Behavior and Transitions in N-Person Social Dilemma Games.-Optimizing Imperfect Preventive Maintenance Policy for a Multi-Unit System with Different Virtual Ages.-Newton-Type Solvers Using Outer Inverses for Singular Equations.-Properties of Linear Time-dependent Systems